Subscription services have surged due to the COVID-19 induced stay-at-home lifestyle. Streaming and delivery services are among the big winners. Now Walmart reportedly is looking to go up against Amazon Prime with Walmart+, which will be no easy task.
But Walmart has been gaining e-commerce chops in recent years and is no slouch with its extensive online sales channel. Also recall that Walmart started its $98 annual grocery delivery subscription service last September. Meanwhile, Amazon Prime is now $119 per year, with a $12.99 monthly option as well, for a robust mix of benefits. It has north of 100 million global members who are frequent buyers and spend more than non-Prime shoppers. Walmart has a large following of its own and has an advantage in the grocery vertical over Amazon. This all bears watching, especially to see exactly what menu of services Walmart will offer to win share from Prime. It appears we’ll be finding out soon.
The following Vox article reports more on the topic:
Amazon may have a 15-year head start, but Walmart is close to finally unveiling its own membership program that it hopes will eventually become an alternative to Amazon Prime.
Walmart plans to launch a new subscription service later this month called Walmart+ that will cost $98 a year. It will include perks like same-day delivery of groceries and general merchandise, discounts on fuel at Walmart gas stations, and early access to product deals, multiple sources told Recode.
Walmart originally planned to unveil Walmart+ in late March or April, Recode reported in February, but the retailer pushed back the launch date after the Covid-19 pandemic began sweeping across the US in March. It’s unclear whether the program will launch nationally, or first on a regional level, later this month.
Launched in 2005, Amazon Prime has become a loyalty program that now boasts more than 150 million members globally and sports a portfolio of perks, including express delivery of groceries and other items, access to a large catalog of TV shows and movies, as well as exclusive discounts at Whole Foods stores. Amazon Prime members, who pay $119 annually in the US, shop more frequently and spend more on Amazon than non-Prime members do. They also do price comparisons less across competitor sites.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group